By: Devajyoti Bandyopadhyay Nassif Mohammad Syed Qadri Sujith Kurian Visakh Udaykiran (Under Guidance of Prof. Anirvan Pant) (International Business : EPBMI-08 : IIM Calcutta) Date: 05 June 2022 Growth of Beer Industry Growth of Beer Industry in China Eurasian Brewing Company (EBC) Growth of EBC in South-East Asia Forbidden City vs. Wild Dog (Business Analysis and Our suggestion to Mr. Wang) ***Sources: Statsvista Beer industry in China is changing at a very fast pace. Chinese markets are different global in terms of the Govt. regulations, raw materials supply & consumer preference • Craft beers growth in sales was 40% between 2015-2018 and is predicted to grow at 120% for next 4 years. China still a popular price market Chinese local breweries are still strong but Demand for low end products is declining as the younger population is turning towards premium ancraft beers. China produced 341.11 million hectoliters of beer in 2020, around 1.6 times more than the United States. There were 346 beer enterprises in China in 2020, reaching 146.894 billion CNY in sales revenue ***Sources: Market research IBG DSB EBC IBG DSB • Singapore-based brewer • Coca-Cola • Aggressive cost-cutting corporate culture • Provincial Brewery Selling • Alliance Carlsberg Group Victor Wang MD Bradley Lee General Counsel Grace Chu, Finance director David Li , Ops and Technical Director Vivian Chin, Director of Marketing and Export Sales Lie Jie, VP, China and East Asia Other Regional VP’s East Asia Opts China Sales and Distribution East Asia Sales and Distribution East Asia Marketing Team Cost Structure Top-line Growth Expansion Opportunities Global Branding Strategy Location No Legal constraints High-Quality and Low-cost product Local versus Global Market (10% Presumption); China Market Characters Prefers Short term market turnaround, More domestic opportunity, Foreign investment a threat (Liability of Foreignness); CAGE Distance Framework (A distance Authoritarian China Gov’t vs. any other Pan-Asia Gov’t mostly democratic!) Magnitude of China Market! EBC Situation and Stategy: Decision Bias and Conflict between Chin and Li Jie Needs adaptation for local responsiveness over aggregation for Global Integration to China market; Photo Source: https://granth.info/market-research/ Launch Forbidden City to China market (2 Small Breweries, OR Small scale production in Existing EBC breweries); Shelf Wild Dog as Back up; Observe turn around of Forbidden City; Decide in Future seeing the turnaround of ‘Forbidden City’. Source: https://www.pinterest.com/pin/802414858580311286/ Source: https://www.chinahighlights.com/beijing/forbidden-city/ Source: https://www.dreamstime.com/stock-illustration-q-questionanswer-d-people-man-person-speech-bubble-image68841761